Rep. Joe Wilson, a member of the House Committee on Education and the Workforce, introduced a bill Friday to delay the implementation of the Department of Labor’s fiduciary rule by two years.
Labor’s “fiduciary rule is one of the most costly, burdensome regulations to come from the Obama administration,” Wilson, R-S.C., said in a statement introducing the bill. “Rather than making retirement advice and financial stability more accessible for American families, they have disrupted the client-fiduciary relationship, increased costs and limited access.”
The rule’s first compliance date is April 10. Wilson said that delaying the implementation of this “job-destroying rule” would give “Congress and President-elect Donald Trump adequate time to re-evaluate this harmful regulation.”
Industry groups were quick to throw their support behind the bill.
Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association, said in reaction to the bill that “as our members have worked diligently to prepare for implementation, at great cost and with consequential impacts on retirement savers, a delay in applicability would be prudent to allow the new Congress and administration to review a better course to protect investors.”
SIFMA, he added, continues “to believe the rule is harmful to the market and most importantly investors.”
Cathy Weatherford, president and CEO of the Insured Retirement Institute, said that IRI thanks “Wilson for his leadership on this important issue. We have long-standing concerns about the rule and its harmful impact on retirement savers. A delay is much needed and will provide more time to policymakers to reevaluate it and protect consumers from its negative consequences.”